The subscription for Zomato’s Rs 9,375 crore share sale via initial public offering (IPO) – the biggest in recent times beating Coal India, ends for investors today. Raising more than ₹ 4,196 crore from anchor investors ahead of the IPO, Zomato’s shares have been in high demand among retail individual investors and qualified institutional buyers so far. The IPO was subscribed nearly eight times by noon on the third and final day of the issue today, according to subscription data on the exchanges.
The leading online food delivery service provider’s IPO opened for investors on Wednesday, July 14, and will close by 5:00 pm today.
The portion reserved for retail investors in the IPO was subscribed 5.75 times on Friday by 12 noon. The portion set aside for the non-institutional investors (NII) was subscribed 1.20 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 12.06 times – the highest today among the three groups of investors.
Zomato IPO is one of the biggest initial public offers in recent times and the second-largest share sale after the ₹ 10,355 crore IPO by SBI Cards and Payment Services last year. It is also the first Indian mega startup to go public.
The IPO consists of a fresh issue of ₹ 9,000 crore and an offer for sale of ₹ 375 crore by the promoter – Info Edge India. Zomato has fixed the price band of the primary market offering in the price band of ₹ 72-76 per share. The shares of Zomato are likely to be listed on stock exchanges BSE and NSE on July 27.
The restaurant aggregator will use the IPO proceeds to fund organic and inorganic growth initiatives and for general corporate purposes. Backed by China’s Ant Group, it is the most prominent startups in the country today and also has a presence in 24 countries.
Zomato IPO is likely to pave the way for other leading digital firms to go public, such as Paytm, Flipkart, Ola. On Friday, Paytm filed draft papers for an initial public offering of up to ₹ 16,600 crore, according to market regulator SEBI.